Stock Analysis

Increases to First Business Financial Services, Inc.'s (NASDAQ:FBIZ) CEO Compensation Might Cool off for now

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NasdaqGS:FBIZ
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Performance at First Business Financial Services, Inc. (NASDAQ:FBIZ) has been reasonably good and CEO Corey Chambas has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 30 April 2021. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for First Business Financial Services

Comparing First Business Financial Services, Inc.'s CEO Compensation With the industry

Our data indicates that First Business Financial Services, Inc. has a market capitalization of US$213m, and total annual CEO compensation was reported as US$1.4m for the year to December 2020. That's a notable increase of 12% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$490k.

In comparison with other companies in the industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$777k. Hence, we can conclude that Corey Chambas is remunerated higher than the industry median. What's more, Corey Chambas holds US$3.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20202019Proportion (2020)
Salary US$490k US$466k 36%
Other US$885k US$766k 64%
Total CompensationUS$1.4m US$1.2m100%

On an industry level, roughly 42% of total compensation represents salary and 58% is other remuneration. First Business Financial Services sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
NasdaqGS:FBIZ CEO Compensation April 24th 2021

First Business Financial Services, Inc.'s Growth

First Business Financial Services, Inc.'s earnings per share (EPS) grew 13% per year over the last three years. In the last year, its revenue is down 2.6%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has First Business Financial Services, Inc. Been A Good Investment?

First Business Financial Services, Inc. has generated a total shareholder return of 4.5% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for First Business Financial Services that investors should look into moving forward.

Switching gears from First Business Financial Services, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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About NasdaqGS:FBIZ

First Business Financial Services

First Business Financial Services, Inc. operates as the bank holding company for First Business Bank that provides commercial banking products and services for small and medium-sized businesses, business owners, executives, professionals, and high net worth individuals.

Flawless balance sheet established dividend payer.